What is the IRS Oversight Board

and Why Should I Care?

By Jeremy D. Eveland, MBA, JD

June 26, 2006

Overview

              Believe it or not, in 1998 the IRS was "restructured" in what I will refer to as the "Restructuring Act."  The Restructuring Act created the IRS Oversight Board and gave the Oversight Board certain responsibilities.  These included the duties of overseeing the IRS' management, its administration, and the duty to supervise the IRS' implementation of the Internal Revenue Code.  Think about that for a minute: there is this governing body of the IRS that has the specific duty to make sure the IRS is doing its job right. Now, don't get me wrong, the Oversight Board does have certain other duties, but it has no authority or control over specific taxpayers or any specific criminal investigations.  The Oversight Board can only keep an eye on how the IRS generally carries out the code provisions.  With the Oversight Board in place and with the limitation of not being able to look at specific cases, how is it able to do its job?

The IRS Oversight Board's Duties

            I like to think that the Oversight Board's responsibilities are similar to those of a board of directors for a multinational corporation. The Oversight Board reviews and approves the "strategic plan" of the IRS, reviews the operational functions of the IRS to ensure taxpayers are properly treated (even thought the Oversight Board can't look at specific cases), and evaluates the performance of senior tax executives. I recently learned that the Oversight Board was also placed in charge of approving the selection of a new IRS Commissioner.  Not only that, but the Oversight Board also gets to approve any major reorganizations of the IRS.  Now, I'm not making fun of the Oversight Board, because I know that they have conducted hearings and solicited input to discuss major IRS issues, including budgeting issues, which I think are most important.

How Big Is the Oversight Board
           The Oversight Board has a total of nine (9) members. Three (3) of the members are the Secretary of the Treasury (or the Deputy Secretary); the Commissioner; and an individual who is a full-time federal employee or a representative of employees (i.e. - an employee representative). The remaining six (6) members of the Oversight Board are normal people like you and me who are appointed to the board by the President.  Of course, the Presidential appointment must be approved by the United States Senate.  The six (6) other members of the Oversight Board are appointed without regard to political affiliation, based solely on their expertise in the areas of management of large service organizations; customer service; the federal tax laws, including tax administration and compliance; information technology; organization development; and the needs and concerns of taxpayers and small businesses.

Why Can't the Oversight Board Review Specific Cases
            The Oversight Board has limited access to confidential tax return information pursuant to IRC § 6103.  This "limited access" to information does not include the taxpayer’s name, address, or taxpayer or employer identification number. This is just another step, in my opinion, for your privacy protection . . . right?  I mean Oversight Board members are even subject to the anti-browsing rules applicable to all other IRS employees under the law. The Board is further subject to several ethics rules pertaining to several internal activities and financial disclosure requirements.

Why should I care?

                   You should only care about the Oversight Board and the IRS in general if you have a tax problem.  It is my understanding of the "redesigned IRS" that the IRS has refocused the agency’s efforts on tax enforcement and compliance. Even recent IRS speeches and other public statements makes it clear to me that the IRS is back into the audit and collection business. This means if you are "lucky" you'll get chosen for this wonderful experience. 

Conclusion

                   From my own personal experience I simply want to educate and inform you . . . and if you are having tax question or concerns, you might want to call me to discuss what is keeping you up at night.  If you feel educated or informed by reading this article, then I have done something good.  Now, if you have been chosen by the IRS to have a tax lien or if you have another tax problem, give me a call.  No joke.  If you have been "chosen" give me a call now at (801) 747-0821 and tell my assistant Candace that you read the internet article on the IRS Oversight Board and would like to speak with me.  By telling Candace this, you'll receive a free initial consultation worth at least $275.  Go ahead, call me now.  Thanks for reading.